Crypto lounge thread

redbeard

Hummingbird
Catholic
Gold Member
Thanks--yeah, if I were starting now I wouldn't go through Coinbase but didn't know about the risks it faces when I first started with crypto. Now that I have an account and have done all their KYC stuff I'm not sure that there's any way to put the toothpaste back in the tube anyway.
Sell all your positions, take the tax hit, and close your account.
 

tomzestatlu

Kingfisher
Agnostic
I am currently 100% on ETH and we see nice gains. Is it worth holding until ATH or sell (BTC/USD) ? I didn't watch ETH for years and now I don't have an exit strategy.
I am watching ETH tredictions on tradingview and they all short once it goes up few percents.
 

SlickyBoy

Hummingbird
I am currently 100% on ETH and we see nice gains. Is it worth holding until ATH or sell (BTC/USD) ? I didn't watch ETH for years and now I don't have an exit strategy.
I am watching ETH tredictions on tradingview and they all short once it goes up few percents.
Look into swapping some for CEL via uniswap. But FFS, whatever you do, don't sell for USD.
 

Deepdiver

Crow
Gold Member
XMR getting hammered for obvious reasons (delistings)......I remain firm in my conviction that this is a coin worth accumulating over the next couple of years. The one counter I have heard from XMR is the inability to verify due to anonymity, which makes sense.......time will tell. I will continue accumulating at lower levels. Privacy coins have a big future in my opinion (even with exchange delistings).
My last look at Monero is it is still the only crypto that IRS, FBI, FSB, CCP can't trace-engineer and track back to your PII/IP adxs ... Has anyone researched if there are any HW wallets or Samurai on a hardened De-Googled android without all of their Corporate User espionage-ware that enable peer to peer trading/buy/sell/payments with Monero?

Curious how difficult it would be to fork Monero into a more ninja stealth privacy coin?
 

kosko

Peacock
Gold Member
Sell all your positions, take the tax hit, and close your account.
What are Coinbase alternatives for retail types that are also foreign-friendly (Canada)?

I am not an expert on Crypto, but I know enough now to navigate it safely. Coinbaise provides the least amount of friction, especially for Canadians. Many Canadians were burned by the QuadrigaCX collapse fiasco (myself included), so there is hesitation to move away from something that (appears) to be well structured and stable.

The reality is that systems have to be built to be as frictionless as possible to the average participant in Crypto. Something that is not confusing to use connects to my bank account and provides a simple way for selling/payout (important), are important. I am happy to learn and explore other options, but as of right now, the only other options I have found do wire from a bank vs. direct pre-auth for funding (direct pre-auth is faster and does not require email confirmations to fund).

I'm happy to learn more.
 

Leads

 
Banned
Sooo glad I bought Travala (AVA) - it continues to rise. Gotta look at the big picture, IE: Where is BTC actually being rolled out for traditional services? In this case, travel and hotels. It's still under $1 a share......
 

redbeard

Hummingbird
Catholic
Gold Member
What are Coinbase alternatives for retail types that are also foreign-friendly (Canada)?

I am not an expert on Crypto, but I know enough now to navigate it safely. Coinbaise provides the least amount of friction, especially for Canadians. Many Canadians were burned by the QuadrigaCX collapse fiasco (myself included), so there is hesitation to move away from something that (appears) to be well structured and stable.

The reality is that systems have to be built to be as frictionless as possible to the average participant in Crypto. Something that is not confusing to use connects to my bank account and provides a simple way for selling/payout (important), are important. I am happy to learn and explore other options, but as of right now, the only other options I have found do wire from a bank vs. direct pre-auth for funding (direct pre-auth is faster and does not require email confirmations to fund).

I'm happy to learn more.
Most exchanges are absolute cancer and require you to doxx yourself to use them. Not sure what's available on your side of the wall but this website has Canada on it:
 

Coja Petrus Uscan

Crow
Orthodox Inquirer
Gold Member
From CoinTelegraph.

The IRS looms.

A former top investigator is warning that “a high-stakes game of chicken” between the Internal Revenue Service (IRS) and cryptocurrency holders who fail to properly report their earnings will be entering a new phase in 2021 as the tax collection agency begins to focus on pursuing “civil and, potentially, criminal penalties.”

In an article co-authored by Don Fort today, the former chief of the Internal Revenue Service’s (IRS) criminal investigation division said that while the agency until now has focused its resources on informing the public of proper reporting guidelines, it will now be turning to more stringent “enforcement.”

“The IRS has been not-so-quietly positioning itself for a smooth transition from education to enforcement in 2021 and beyond.”
The article notes that the trail starts with Coinbase, who answered a “John Doe” summons in 2018 and handed over account information on nearly 13,000 users — information which could soon lead to crackdowns. For instance, the article mentions the request the IRS made to Luxembourg-based exchange Bitstamp for information on one American user.

The focus on crypto holders is in part due to a widening “tax gap” — the rift between the total income from taxes that should be paid to the Treasury verses what it actually receives — a disconnect in which Fort and his co-author Lawrence Sannicandro believe crypto holders could be playing a major part.

“As of Dec. 10, with Bitcoin fresh off new record highs, the market capitalization of cryptocurrencies was $524 billion,” the article reads. “Assuming cryptocurrency-related tax liabilities of $25 billion and a 50% compliance rate, unreported cryptocurrency tax liabilities again account for around 3.2% of the $381 billion tax gap. Thus, it is likely that unreported taxable cryptocurrency transactions are contributing significantly to the tax gap.”

Ultimately, the article concludes that major trends — such as the addition of a question about cryptocurrency now prominently placed at the top of form 1040 — indicate that the IRS is gearing up for widespread efforts to root out underpayment.

“Even though the IRS has not yet announced many mainstream tax evasion or money laundering cases involving virtual currency, that trend should change in 2021.”

Moreover, crypto holders shouldn’t try to get cute when the tax man comes calling.

"History has shown that underestimating the government is a fool's game."
 

kosko

Peacock
Gold Member
Any funding run you do in Fiat or CC or any Conversion to Crypto, and then the endpoint where you go back to Fiat/CC is connected to your unique Banking IDs (All your accounts including CCs all have IDs which are tied to your SS. All CCs are issued through Banks who all share this info with each other). Unless you are completely off-grid, Crypto origin, and do strictly P2P within the Crypto ecosystem you do in fact have a data paper trail with the established banking systems and Crypto. There is no such thing as a blind transaction in the banking world. You run a CC or Bank transaction and everything from identifiers to the geolocation is tagged to it. It is all dumped in Data Lakes and I don't think the Banking sector even knows what to do with it but the data exists.

From my understanding, the info Coinbase turned over was already in the public domain and all transaction data is public domain.
 

redbeard

Hummingbird
Catholic
Gold Member
Any funding run you do in Fiat or CC or any Conversion to Crypto, and then the endpoint where you go back to Fiat/CC is connected to your unique Banking IDs (All your accounts including CCs all have IDs which are tied to your SS. All CCs are issued through Banks who all share this info with each other). Unless you are completely off-grid, Crypto origin, and do strictly P2P within the Crypto ecosystem you do in fact have a data paper trail with the established banking systems and Crypto. There is no such thing as a blind transaction in the banking world. You run a CC or Bank transaction and everything from identifiers to the geolocation is tagged to it. It is all dumped in Data Lakes and I don't think the Banking sector even knows what to do with it but the data exists.

From my understanding, the info Coinbase turned over was already in the public domain and all transaction data is public domain.
Is cash not an option?
 

kosko

Peacock
Gold Member
Is cash not an option?

Cash won't have any of those issues. Cash is not the first option for many in 2021, and IMO, it is also not practical in large sums. You can fund in Cash, but how easy is it to convert back to Cash? BTC ATMs have limits of like $4K; all Cash instruments will have limits.

For those who have been in the Crypto space for a long time, the waves and upside you guys are riding now are largely due to access and friction being recused for Mainstreet folks and institutional folks to get in.
 

redbeard

Hummingbird
Catholic
Gold Member
Cash won't have any of those issues. Cash is not the first option for many in 2021, and IMO, it is also not practical in large sums. You can fund in Cash, but how easy is it to convert back to Cash? BTC ATMs have limits of like $4K; all Cash instruments will have limits.
I doubt most people are buying in sums larger than $4k.
For those who have been in the Crypto space for a long time, the waves and upside you guys are riding now are largely due to access and friction being recused for Mainstreet folks and institutional folks to get in.
All of the financial gains in the world are not worth giving up our privacy. Submitting BTC to KYC authorities will make it no better than the USD.
 

Coja Petrus Uscan

Crow
Orthodox Inquirer
Gold Member
Now it loos like alts may see upward action, does anyone have any tips for alts to hold for the year?

In 2017 it was much easier to pick alts that way outperformed Bitcoin. That I remember I bought EOS, which 30Xed, got out at about 20X; and REP, with something like the same. At the time those seemed very obvious trades to me.

A few observations.

1) There is a trend of a number of coins coming in and out of the top 100. These are the stronger projects that have been around since about 2017. Projects like Aragon (recently backed by Tim Draper), DATA, Gnosis, Civic, Status, ENJ, MANA, Golem. Among this general class there are STEEM and Hive, which had a good year in 2017 and were very active. Since STEEM has fallen away and after being Justin-Suned has crashed a lot. I have positions in ENJ and CVC taken early last year, which have done well, but am not feeling the pull to buy any more. These projects don't really have what it takes to propel market caps, which is FOMO buzz, techphilia and ponzi potential. If we have a good year, they will likely see modest gains, but without a significant event like explosive use, major investment I don't see them being big gainers from this going.

As an example of this class CIVIC has 11Xed this year, before pulling back to 6X. Aragon has 16Xed, before pulling back to 6X. This is from the March low.

2) There are a number of other solid projects that were once in the top 100 (in most cases) but have fallen way dow, even below position 1,000 in market cap. Among them are coins like MYST, Presearch (one of the most visited crypto websites yet was at about $250K cap a year ago), LBC, Contentos, Propy, AVA. These ones have often fallen due to having poor marketing/social media presence and being delisted from exchanges. The same notes above apply for these, but their caps are much lower, so can potentially provide larger gains, though you would expect that is less likely.

Among these Presearch 30Xed out of January, but has been fairly static since March. MYST has 10Xed (including currently) out of March, but has traded more comfortably around 5-6X.

Both 1) and 2) can swing up a lot more than BTC, but they tend to pull back harder too. Low volumes make 2) more risky with large holdings, $10K+.

3) DeFi projects popped in August 2020 as they gained something in the region of 3% of all crypto trade. Early in 2020 DeFi was doing about $5-10 million swaps / day. By September volume popped to a few hundred million per day and we are seeing a consolidation at around $2 billion per day now. I suspect we will see about 10% of trades on DeFi by the end of the year. These Fed/IRS pokings will hasten it. Although the value of DeFi tokens is not a strong case, neither is much else in crypto, especially some of the FOMO projects of 2017 that people were shilling, like RaiBlocks and Bit..con..con..con..eeecccctttttt! If these move they will move on the noise.

I have been quite buying of late. One I bought is Uniswap, which is the biggest DEX and it's 1Xed. I can see it doing 10X overall this year. There will likely be a smaller project that can get into the 30-100X range.

4) The Ponzi - I think the biggest chance for 10-100X gains this year will come from ponzis. The whole space is by and large ponzi and most of the reason people give to buy a coin are gimmicks relating to a contracting supply. There is no real value, just the hope you can be bought up in value. In 2017 this was unorganised. Coins had limited supplies, burn gimmicks and you would be bought up to the moon by later and later-comers. In 2021 this has been expanded on. We now have projects which are much more curated around the ponzi of later-comers rewarding early adopters with no real value. I think the best case for this so far is CEL, which someone mentioned above. I was looking at this for a $1K punt in March. If I had taken it that $1K would now be $100,000. CEL has a similar offering to certain DeFi projects in that they pay out their token as interest on crypto. Pretty good for them. They have tokens they have printed for nothing that they then pay out as interest on crypto you lend out on their platform. You can take interest in crypto e.g. BTC, but they give you a better rate in CEL. This has blown up a 100X ponzi based on nothing. Jamie Dimon and the boys at The Fed will be eyeing the wealth distribution with envy. But it's backed with nothing and as soon as people want to get out, it will come tumbling down. Crypto.com managed to blow a similar bubble in their coin last year, by inducing lots of people into locking crypto into high-interest schemes. Much of the interest was them distributing their token, which people kept buying to earn more. They put an ease on the extent of the ponzi and popped their 7X bubbled, while BTC had barely 2Xed from its low. This is all rubbish, but if you understand the nature of the games and the market, you can ride it up. I sold as soon as Crypto.com announced they were cooling the ponzi. Down about 70% since.

Something like this will be your best bet for large gains this year. I see ETH and BTC doing about 3X from here. While something like this could do 10-100X. A good candidate is probably NEXO, which is very similar, but a more solid proposition than CEL, because the NEXO token is backed by a 30% dividend of their real business revenue. It's been a very stable coin since inception and the company looks to be well formed. Bought some at a recent low and is up 2X.

5) Alternate blockchains - 2017 saw some good gains for alternate blockchains, such as Rai Blocks, which was shilled mercilessly here. Although some of these are far superior to Bitcoin and ETH from a technical perspective, I think it's highly unlikely either will face serious competition soon. Tron and EOS have huge warchests, but have virtually nothing on their chains; and Bitcoin's nearest competitor (Litecoin) is 2% of its market cap. As Microsoft has come to own the OS market and WordPress the online publishing market despite both being spyware/junk; Bitcoin dominate quasi-anonymous payments and ETH dominates decentralised finance. Neither are adequate or even usable for their projected uses, but they have cornered those markets and will be very difficult to shift without both huge warchests and astute leadership.

But with that said, I think we will continue to see the rapid rise, likely followed by the rapid fall of alternative blockchains. In this space we have seen Polkadot become a top 10 coin in attempting to form glue between chains. Of alternative chains two of the strongest candidates for a pump this year are Solana and e-Radix. The later I have been following since 2013 and they have just released their temporary ETH token, which will later be swapped onto their own chain. They have some very good backing, including Taavet Hinrikus, co-founder of TransferWise, which is the most disruptive fin-tech and I suspect will be taking large bites out of PayPal and their hefty fees in the coming years. If you have been around for a long time you might remember its predecessor, e-Munie, which was a highly touted beta project in the days when Feathercoin was considered a decent buy and DigitalCoins a astute speculation :) Radix is not a blockchain and has huge scaling ability, with very low fees. A good video on it here:



@Leads - What are you looking at? You have made some goods picks.
 
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budoslavic

Eagle
Orthodox
Gold Member
Not sure where to post this since I'm not an expert in crypto, Bitcoin, stablecoins, etc. But it sounds like good news.



@jerallaire thread continue
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2/ This is a huge win for crypto and stablecoins - $USDC
...
3/ The new interpretive letter establishes that banks can treat public chains as infrastructure similar to SWIFT, ACH and FedWire, and stablecoins like USDC as electronic stored value. The significance of this can’t be understated.
...
4/ Decentralized, permissionless, open source and internet mediated software is literally becoming the foundation for not just the US financial system but for the global economy.
...
5/ We are on a path towards all major economic activity being executed on-chain. It is tremendous to see such forward thinking support from the largest regulator of national banks in the United States.
...
6/ This paves the way for the use of leading dollar digital currencies such as USDC as a mainstream payment medium for all forms of payments and settlement, and helps put the US in a leadership position in embracing the power of public blockchains.
...
7/ Beyond payments and settlement, and unlike legacy settlement mediums, public chains combine transactions and compute, enabling a radically new modes of financial and commerce apps to be built.
...
9/ It also sets the stage for more regulated financial institutions to run blockchain nodes, and even become validators.
...
10/ This is a HUGE way to start 2021, the year that crypto and stablecoins go mass market!
=====

Federally Chartered Banks and Thrifts May Participate in Independent Node Verification Networks and Use Stablecoins for Payment Activities​

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today published a letter clarifying national banks’ and federal savings associations’ authority to participate in independent node verification networks (INVN) and use stablecoins to conduct payment activities and other bank-permissible functions.

“While governments in other countries have built real-time payments systems, the United States has relied on our innovation sector to deliver real-time payments technologies. Some of those technologies are built and managed by bank consortia and some are based on independent node verification networks such as blockchains,” said Acting Comptroller of the Currency Brian P. Brooks. “The President’s Working Group on Financial Markets recently articulated a strong framework for ushering in an era of stablecoin-based financial infrastructure, identifying important risks while allowing those risks to be managed in a technology-agnostic way. Our letter removes any legal uncertainty about the authority of banks to connect to blockchains as validator nodes and thereby transact stablecoin payments on behalf of customers who are increasingly demanding the speed, efficiency, interoperability, and low cost associated with these products.”

The agency letter concludes a national bank or federal savings association may validate, store, and record payments transactions by serving as a node on an INVN. Likewise, a bank may use INVNs and related stablecoins to carry out other permissible payment activities. In deploying these technologies, a bank must comply with applicable law and safe, sound, and fair banking practices.

Engaging in INVN within the federal banking system may enhance the efficiency, effectiveness, and stability of payments activities and achieve the benefits of real-time payments already enjoyed in other countries. For example, such activities may be more resilient than other payment networks because of the decentralized nature of INVNs, which allows a comparatively large number of nodes to verify transactions in a trusted manner. An INVN also limits tampering or adding inaccurate information to the database because information is only added to the network after consensus is reached among the nodes validating the information.

Banks must also be aware of potential risks when conducting INVN-related activities, including operational risks, compliance risk, and fraud. New technologies require enough technological expertise to ensure banks can manage these risks in a safe and sound manner. Banks have experience with managing such risks, which are similar to those of other electronic activities expressly permitted for banks, including providing electronic custody services, acting as a digital certification authority, and providing data processing services. Among the compliance risks, banks should guard against potential money laundering activities and terrorist financing by adapting and expanding their compliance programs to ensure compliance with the reporting and recordkeeping requirements of the Bank Secrecy Act and to address the particular risks of cryptocurrency transactions.

Banks should develop and implement new activities consistently with sound risk management practices and should align with banks’ overall business plans and strategies.

Interpretive Letter
 

Arado

Pelican
Gold Member
Not sure where to post this since I'm not an expert in crypto, Bitcoin, stablecoins, etc. But it sounds like good news.



@jerallaire thread continue
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Interpretive Letter

Was about to post this as well. I don't 100% understand it yet, but seems like it makes it much less likely that the government will outright ban crypto assets in the near future and stablecoins are now legitimate financial assets.

 

Meraki

Sparrow
Was going to post this in the personal finance thread - but it seems you can now buy BTC, Litecoin & a few others using PayPal. Just to test it out I transferred small money to it. PayPal takes a very small transaction fee & it seemed to clear the funds very fast. I have a very very old PayPal account that somehow avoided most of the usual KYC stuff, which is why I always hesitated pulling the trigger on BTC thru coinbase the past year - I simply don't understand it.

Now that major apps & "normal" e-wallets can purchase and "invest" in crypto - what do some of you guys think for the price target of BTC?
I'm not sure I understand this contradiction that it can be this new currency, when it is so unstable and volatile - which is the opposite of what you'd want in currency. My idea would be to just keep accumulating monthly, until hopefully another pop, then converting back to USD.

It seems the next big phsychological number to break thru would be 50k - but this thing has been parabolic for quite some time now. What drives these fluctuation? FOMO? Looking at it as though it was a stock chart you'd hope to see consolidation for a bit at 28-30. How should one assess this?
 
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